New Jersey recently adopted its Cottage Food Law, making it easier for entrepreneurs to start a home-based food business. If you’re interested in selling baked goods, jams, or other homemade treats, here’s what you need to know about starting a small food business in the state.
1. What Types of Food Businesses Don’t Require Permits?
New Jersey’s Cottage Food Law allows for the sale of non-potentially hazardous foods without needing a commercial kitchen or food establishment permit. These include:
- Baked goods (cookies, cakes, bread, muffins)
- Jams and jellies
- Candy and confections
- Honey and syrups
- Dried herbs, teas, and spices
These products are considered safe because they don’t require refrigeration. However, you cannot sell products like meats, dairy-based foods, or anything requiring temperature control.
For a complete list of allowed items, check with the New Jersey Department of Health.
2. Legal Requirements and Steps to Start a Food Business
A. Cottage Food License
In New Jersey, you must obtain a Cottage Food Operator Permit before selling your products. The application process requires:
- Submitting an application to the New Jersey Department of Health
- Completing a food safety training course (ServSafe or equivalent)
- Paying a $100 annual fee
- Listing the specific foods you plan to sell
You can find the application form and more details on the NJDOH website.
B. Labeling Requirements
All cottage food products must be clearly labeled with the following information:
- Your name and address
- The common name of the product
- A full list of ingredients
- Any allergens (like nuts, dairy, wheat, etc.)
- The statement: “Made in a home kitchen that is not inspected by the Department of Health”
Proper labeling is crucial for compliance and consumer safety.
C. Selling Restrictions
Cottage food operators in New Jersey can only sell their products directly to consumers. You can sell at:
- Farmers markets
- Roadside stands
- Community events
- Direct from home (pickup or delivery)
However, you cannot sell online for out-of-state shipping, and wholesale sales to retailers are prohibited.
3. Tips for Starting Your Business
A. Focus on Your Niche
Identify a specific niche that can make your products stand out, whether it’s gluten-free baked goods, organic jams, or unique candy flavors. Offering something different will help you attract a loyal customer base.
B. Comply with Local Regulations
In addition to state requirements, check with your local municipality for zoning laws and business licensing. Some cities or counties may require additional permits or sales tax registration.
C. Promote Your Business Locally
Maximize your exposure by attending local farmers markets, craft fairs, and community events. Use social media to promote your offerings, share updates, and connect with potential customers.
Starting a small food business in New Jersey is easier than ever with the state’s new Cottage Food Law. Follow the steps outlined above, and for more detailed information, visit the New Jersey Department of Health Cottage Food Program.
*Disclaimer: This article or any content hereof is not a substitute for professional legal advice, does not create an attorney-client relationship, nor is it a solicitation to offer legal advice.